AUD/USD further diminished on Wednesday, falling beneath 0.6730.
Australian employment figures are set to guide short-term trends that could lay the groundwork for a more hawkish RBA.
Fed’s Barkin didn’t rule out a July rate cut.
The Australian Dollar (AUD) extended losses against the USD during Wednesday's session, with the AUD/USD dipping to 0.6725. Following the declining streak from Monday's and Tuesday's sessions, the AUD intensified its losses as profit-taking by investors escalated. Nevertheless, the economic landscape suggests the AUD's potential to withstand falls against the USD amidst differing monetary policies between the Federal Reserve and the Reserve Bank of Australia (RBA).
Despite indications of a fluctuating Australian economy, persistently high inflation is urging the RBA to postpone cuts, which may restrain the AUD's downside. It is foreseen that the RBA will be amongst the final central banks from the G10 countries to implement rate cuts, a component that could bolster the AUD's upswing.
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